California is pursuing an ambitious plan to pay off the entirety of unpaid rent from low-income tenants who fell behind during the pandemic, in what could constitute the largest ever rent relief program in the US.
California Democratic Governor Gavin Newsom, facing a Republican-led recall, according to CNN News, is pushing the state legislature to use $5.,2 billion in federal pandemic relief money to pay 100 percent of unpaid rent owed by low-income residents during the pandemic.
Not only is the governor asking that the $5.2 billion be used to cover the unpaid rents, but Newsome is also asking that $2.9 billion in the federal relief funds be set aside to pay for unpaid water and electric bills, per the New York Times.
California is not only the largest state, population-wise, but has suffered from a major housing crisis and severe economic inequality since long before Covid-19. The state was also the first one to shutdown last year due to the COVID-19 crisis.
According to a recent analysis, close to 900,000 renters in California owe an average of $4,600 in back rent. And according to The Guardian, unless some aggressive action is taken to offer some kind of protection and relief, “the state would experience a tsunami of evictions and a dramatic worsening of its homelessness crisis.”
Even though there have been restrictions in place to stop evictions since March 2020, countless renters have been pushed out of their homes, while out of work and unable to pay the high rents the state is known for.
When Governor Newsome shut the state down last year, he predicted a shortfall in the state’s budget, but surprisingly, the state finds itself with so much money that taking the unprecedented step of paying unpaid rents would be possible.
Almost $350 billion was provided to state and local governments by the American Rescue Plan, and Congress gave broad flexibility on how to use the funds. California received about $4.7 billion in federal funds allocated specifically for rental assistance from the plan.
